Corporate Responsibility Social and Environmental Progress Report
Corporate Responsibility Social and Environmental Progress Report 1 Table of Contents
INTRODUCTION 3
WHO WE ARE 4
The data included in this report reflects SpartanNash’s footprint and CR DASHBOARD 5 initiatives from January 1 to December 31, 2018. LOCAL DEVELOPMENT 6
GROWERS AND PRODUCERS 7
COMMUNITIES 8
SPARTANNASH FOUNDATION 9
HEALTH AND SAFETY 10
INFORMATION SECURITY 17
ASSOCIATE DEVELOPMENT 18
ETHICS AND COMPLIANCE 20
PROJECT ONE TEAM 21
VOLUNTEERING 22
DIVERSITY & INCLUSION 25
WASTE REDUCTION 28
ENERGY REDUCTION 32
LOOK FORWARD 35
Corporate Responsibility Social and Environmental Progress Report 2 Introduction
Year over year, associates throughout universal processes and productivity, as well as SpartanNash join forces to continue to drive provide management tools and success metrics to greater social and environmental impact exceed performance objectives. throughout the communities we serve. To ensure we are engaging our nearly 19,000 With a nine-state retail footprint, 50-state associates along this journey, SpartanNash wholesale distribution network and global military leadership has modeled our core values, working distribution channel, we recognize we have as ONE TEAM, TOTALLY ALIGNED to SPEAK UP, the ability to influence millions of store guests, EMBRACE CHANGE and DRIVE INNOVATION to independent retail customers, suppliers, vendors, OWN our corporate responsibility goals. shareholders and community partners. Our daily actions have consequences, and therefore we set We are excited for the positive changes—from clear, realistic priorities based on our corporate investing nearly $3 million and more than 56,000 responsibility dashboard and three-year strategic volunteer hours annually into the success of plan to hold ourselves accountable, striving to be our community partners; to building a diverse a best-in-class company that feels local, where and inclusive workforce with opportunities for relationships matter. It’s our vision, and our advancement; to reducing waste, energy and our marching orders. carbon footprint.
This report outlines our progress along this Our work is far from done—in fact, there is no journey, as well as a look ahead. finish line. We will continue to hold ourselves accountable to drive social, environment and In full transparency, data collection from our 19 governance (ESG) sustainable practices that distribution centers, four service centers and best serve our communities, environment and more than 155 corporate-owned grocery stores company performance. takes time, resources and change management. Consequently, we invested in multiple We welcome your input and partnership along management systems and team leaders to drive this journey.
— Our SpartanNash family
Corporate Responsibility Social and Environmental Progress Report 3 Who We Are ND Fargo MN As of December 31, 2019 St. Cloud SD WI MI Sioux Falls Grand Rapids NE IA FORTUNE 400 Lima Omaha Bellefontaine MD IN OH Landover Bloomington VA Indianapolis Norfolk Bluefield
NC Lumberton Oklahoma City MORE THAN $8 BILLION IN SALES GA Columbus
TX Pensacola FL San Antonio Lakeland
A LEADING DISTRIBUTOR OF Retail Grocery Stores Wholesale Food Distribution Centers GROCERY PRODUCTS TO MDV Distribution Centers Caito Foods Distribution Centers Food Distribution and MDV States U.S. MILITARY COMMISSARIES
OUR FAMILY OF COMPANIES
SIXTH LARGEST FOOD DISTRIBUTOR IN U.S.
19 DISTRIBUTION CENTERS
NEARLY 19,000 ASSOCIATES
OUR FAMILY OF RETAIL STORES
134 YEARS OF HISTORY
Corporate Responsibility Social and Environmental Progress Report 4 CR Dashboard Notable Highlights
Corporate responsibility is a journey—and our CR Local Development dashboard provides us with a roadmap of how we • Granted $1.4 million annually in corporate funds and $1.5 million through the SpartanNash as a company can sustain and scale our commitments; Foundation to build stronger communities. predict and respond to emerging needs; and engage • Distributed $1.7 million in tax savings to SpartanNash non-management associates through a our associates and communities in socially responsible, discretionary cash bonus in 2018. environmentally sustainable ways. • Raised minimum wage to at least $10 per hour at corporate retail stores, as part of our commitment to providing fair and equitable wages. Pay is adjusted annually to ensure competitive Our SpartanNash CR dashboard is made up of five wages for associates throughout the company. components—local development, volunteering, diversity • Introduced the Clean Ingredient Initiative for Our Family®, Open Acres® and Freedom’s Choice® and inclusion, waste reduction and energy reduction. products as a way to simplify our ingredient lists and make it easier for store guests and U.S. commissary patrons to make informed purchasing decisions. • More than 14,000 associates took part in mandatory dignity and respect training in 2018, with all new hires thereafter taking part in education and awareness as part of the onboarding process.
Volunteering • In 2018 and 2019, associates volunteered more than 56,000 hours annually, making an economic impact of more than $1.3 million each year. • 176 associates joined the 100 Club by self-reporting more than 100 volunteer hours in 2019— an 11 percent increase from the year before.
Diversity & Inclusion • Named a Military Friendly® Employer by VIQTORY and silver-level Veteran-Friendly Employer by the Michigan Veterans Affairs Agency. • In 2019, 439 leadership positions were filled by internal candidates, with 41 percent filled by female associates, 15 percent filled by people of color and 5 percent filled by veterans.
SpartanNash has been honored as one of the Best and Brightest Companies to Work For® Top Waste Reduction 101 in the Nation, as well as one of America’s • Merged waste tracking into a single-source companywide dashboard to empower associates Best Employers by State. In 2019, Forbes ranked to drive waste reduction and efficiencies. SpartanNash #37 in Michigan. • Diverted more than 5 million pounds of food annually to food banks and pantries, animal feed Learn more. and composting. • In 2018 and 2019, Earth Week celebrations generated 235,000 hours of workforce development through donations to 19 Goodwill partners in 15 states.
Energy Reduction • The SpartanNash fleet’s average miles per gallon improved 12 percent over our 2013 baseline— resulting in 107,938 fewer gallons of diesel consumed in 2018. • Since we began tracking our energy efficiency projects in 2007, SpartanNash has saved a total Corporate Responsibility of 52.2 million kilowatt hours as of year end 2018. Social and Environmental Progress Report 5 Local Development
We are committed to expanding our diverse, local product offerings in our retail stores and to independent customers, which in turn fuels local economies while reducing food miles and meeting our customers’ growing appetite for close-to-home products.
Our local efforts also align with one of our key strategic initiatives to improve associate engagement. Associate-driven initiatives have included career development; health, wellness and safety initiatives; and robust Total Rewards to advance physical, financial, emotional, community and career wellbeing. Local development also includes building stronger communities, working alongside our community partners through our corporate giving and SpartanNash Foundation grants.
Corporate Responsibility Social and Environmental Progress Report 6 Partnering with Local Growers and Producers
SpartanNash is committed to partnering with local farmers and entrepreneurs in the communities we serve. We understand when consumers see the label “local” on a product, they expect to use their purchasing power to support products and businesses right in their own backyards. For this reason, we define local as:
Locally Grown Locally Made Any farm-grown or farm-raised product must come from Any food product only produced within the same state a farm located within the same state as the retail store, as the retail store, or within 100 miles of the store if it or within 100 miles of the store if it crosses over the crosses over the border into another state. border into another state.
Local Items (Includes number of local products in Grocery, Frozen and Dairy only) 2,393 2,344
2,117
1,805
1,500
SpartanNash was the first food distributor and retailer in Michigan to sign Migrant Legal Aid’s Fair Food Pledge in 2016, affirming our commitment to fair labor practices for the state’s migrant and seasonal farmworkers and their In 2018, SpartanNash began partnering with families. More than 40 SpartanNash independent retailers Revolution Farms—an aquaponics farm located have joined us in signing the Fair Food Pledge. just a few miles up the road from SpartanNash’s headquarters in Grand Rapids, Mich.—to provide Learn more about our commitment to fair fresh, sustainable lettuce and greens for store guests treatment and safe working conditions. throughout Michigan. Sold exclusively in Family Fare, D&W Fresh Market, Forest Hills Foods and VG’s Grocery stores, Revolution Farms lettuce goes from farm to store in one or two days. 2015 2016 2017 2018 2019
Corporate Responsibility Social and Environmental Progress Report 7 Investing in Our Local Communities
Corporate Giving In 2019, SpartanNash contributed $1.4 million in Through Direct Your Dollars, 501(c)(3) nonprofit financial support and in-kind donations, funding 2,704 organizations can earn $1,000 from SpartanNash local sponsorships, events and product donations. by collecting eligible receipts from any company- This included $851,000 in sponsorships, $120,000 in owned retail store, using the dollars for band and Learn how to get involved fundraising support and $451,500 granted through the sports equipment, class field trips, mission trips with Direct Your Dollars. Direct Your Dollars™ program. and much more. $451,500
$377,000
Corporate Giving $1.4 million Year-over-year
$1.4 million Direct Your Dollars 2016 Year-over-year
2018 $174,000 $1.5 million
$1.5 million $103,000 2015 $1.4 million
2017 2019
2016 2017 2018 2019
Corporate Responsibility Social and Environmental Progress Report 8 SpartanNash Foundation
The SpartanNash Foundation is committed to supporting 501(c)(3) organizations that focus on hunger relief, securing shelter and supporting our military heroes in the communities we serve. In 2019, the SpartanNash Foundation granted $1.4 million to more than 210 community partners in 16 states. For over a decade, SpartanNash associates have given their time to The SpartanNash Foundation is funded by the company, with support from our associates. Foundation grants are help food insecure Minnesotans by awarded through a quarterly review process. Associates volunteering in our dining sites and at volunteer time to evaluate grants, visit applicant sites’ our farm. Helping Hands Day makes and make recommendations to the Foundation trustees The SpartanNash Foundation was honored in on whether to fund grant requests. a big difference in the lives of so PR Daily’s 2018 Corporate Social Responsibility many people, while the SpartanNash Awards, receiving top honors in the Fundraising The Foundation also raises funds—and significant or Philanthropic Initiative category for our Foundation’s monetary support awareness for community partners—through a series of SpartanNash Foundation. The Foundation was fundraising campaigns in our company-owned stores. helped us surpass 1 million meals in also awarded honorable mention in the Employee 2018 and helped us launch the HUB, Volunteer Program category and our Earth Week initiatives earned honorable mention in the Green a new meal program that helps small and Environmental Stewardship category. SpartanNash Foundation nonprofits provide healthy meals. Year-over-year Loaves and Fishes is thankful for Learn more. SpartanNash’s support!
Cathy Maes $1.5M Executive Director, Loaves and Fishes
$1.3M 2017 2015 $1.5M
$1.8M 2018 $1.4M
See our 2018 SpartanNash Foundation impact. 2019 2016
Corporate Responsibility Social and Environmental Progress Report 9 Double Up Food Bucks HAVE A BRIDGE CARD? For store guests subsidizing their food budget with federal assistance, 46 SpartanNash stores offer the Get FREE fruits & veggies Double Up Food Bucks™ program. Administered by the Fair Food Network, the program enables SNAP customers with DOUBLE UP FOOD BUCKS to increase their access to fresh fruits and vegetables by earning points for free produce.
Double Up Food Bucks Year-over-year point redemption percentage
95% 91% $ $ 80% 78% BUY 1 GET 1
29%
15% USE DOUBLE UP HERE! ShopFamilyFare.com/DUFB and ShopVGs.com/DUFB Questions? Call 866-586-2796. WE SUPPORT 2014 2015 2016 2017 2018 2019 LOCAL FARMERS Corporate Responsibility Social and Environmental Progress Report 10 Living Well Growth in Organics
Focused on helping others live healthier lives, Organic, living well and “better for you” options are SpartanNash’s team of health and wellness specialists available in every aisle of our stores as well as through supports our store guests on their wellness journey, our wholesale food distribution network—and as our working with local partners to provide nutrition customers’ appetites for these products grow, so does education through grocery store tours, cooking classes the number of organic products we offer. and healthy food samplings. In total, 2.2 percent of total dollars spent at SpartanNash In 2018, wellness specialists built and grew partnerships stores can be attributed to organics, in line with the with 35 community partners, in addition to offering store industry standard of 2.3 percent. guests online resources, including Fresh Thinking blogs and food and nutrition tips for special diets, food safety and more.
™ Check out the Family Fare Fresh Thinking blog. Timely Meds
In 2018, SpartanNash introduced the Timely Meds prescription packaging program at its D&W Fresh Market, Family Fare, Forest Hills Foods and VG’s stores throughout Michigan. The 28-day set of personalized pill punch packs—offered for no additional charge—makes Free Fresh Fruit taking multiple medications easier and more organized. for Kids
To encourage healthy eating choices for children, SpartanNash launched its “Free Fresh Fruit for Kids” program in 2018. Using designated bins located near the front of produce sections in SpartanNash retail According to the Journal of the American Medical stores, the Free Fresh Fruit for Kids program encourages Association, those who use personalized pill packs to children to grab a banana or clementine to snack on administer their medication are more than 90 percent while their parents shop the store. adherent in taking their medications on time and as prescribed. Those who take their medications directly out of the bottle are only 65 percent adherent.
Corporate Responsibility Social and Environmental Progress Report 11 Clean Ingredient Initiative Gluten Free In 2018, SpartanNash embarked on a Clean Ingredient Initiative for the company’s exclusive No Nitrates No Preservatives Our Family®, Open Acres® and Freedom’s Choice® Or Nitrites Added private brands. The initiative focuses on providing simpler products, reduced ingredient lists and No Phospates Added High in Vitamin C clean, easy-to-read labels for store guests. High in Fiber Through the Clean Ingredient Initiative, Our Family, Open Acres and Freedom’s Choice products underwent reformulation, with a focus on removing partially hydrogenated oils, monosodium glutamate and trans- fat. More than 575 products underwent reformulation, with a plan to add 280 additional products in 2019 and continue to remove MSG as well as synthetic colors, artificial flavors and preservatives.
Based on availability and cost factors, a further focus will be placed on sustainable packaging and delivering the best sustainable options available in each category.
Products that have undergone reformulation or packaging redesigns as part of the Clean Ingredient Initiatives now feature clean labels with key attributes listed on the front of the packaging. These key attributes make it simpler and more transparent for store guests to quickly identify Our Family and Open Acres products—and for military families shopping in Defense Commissary Agency (DeCA) commissaries Freedom’s Choice and HomeBase to select Freedom’s Choice private brand products. products, along with other private Low Fat For the Our Family brand, clean labels are highlighted label brands available in DeCA with leaf icons and for Open Acres, a circular Good Source commissaries, are exclusively supplied swoosh is used. Green stars call out the attributes of Fiber by SpartanNash and its MDV military on the Freedom’s Choice military private brand. division. In 2017, DeCA selected Cholesterol SpartanNash as its exclusive supplier Free of private label products, marking the first time private brands were offered in U.S. military commissaries. Corporate Responsibility Social and Environmental Progress Report 12 Eternal Oceans Animal Welfare
Through our Eternal Oceans initiative, Open Acres brand SpartanNash takes animal welfare very seriously. We currently have four formalized animal seafood is committed to providing consumers with high We do not own or operate any farms or animal welfare commitments: quality seafood that is sourced from suppliers utilizing processing facilities, but we believe animals responsible practices including a focus on sustainability, should and can be raised, handled, transported • Cage-free eggs: We have set a goal to work traceability, food safety and social responsibility. and processed in ways that ensure they are clean, with our suppliers to develop a sustainable and safe and free from cruelty, abuse or neglect. affordable 100 percent cage-free egg supply We are committed to partnering with suppliers utilizing chain by 2025 or sooner, based on available fisheries that are certified by the Marine Stewardship Animal welfare has been important to us for supply, affordability and consumer demand. Council (MSC) for wild-caught species or the Global many years. In November 2015, the SpartanNash SpartanNash currently offers a variety of cage- Aquaculture Alliance Best Aquaculture Practices (BAP) Animal Welfare committee initially formalized free, certified organic, free range and pasture and Aquaculture Stewardship Council (ASC) for farm- our commitment in an Animal Welfare Policy, raised eggs in our corporate stores and to our raised species. Our suppliers maintain close relationships and we continue to update it accordingly. independent retail customers through our Full with seafood industry leaders such as the Sustainable CircleTM, Green Meadows and Pete and Gerry’s Fisheries, which allows for continual improvement Organic eggs, as well as some of Eggland’s in sourcing. Best eggs.
• Milk with no artificial growth hormones: Our Family® brand milk has no artificial growth hormones (rBST/rBGH).
• Genetically modified seafood: We have no intention of ever selling any genetically modified seafood.
• Polled genetics: We support the use of polled genetics breeding programs for dairy cows, Learn more about our commitment. which, if successful, will ultimately eliminate the need for dehorning.
Corporate Responsibility Social and Environmental Progress Report 13 Keeping Our Food Safety
Associates and Auditing Our Vendors and Manufacturers If a concern is found, SpartanNash Quality Assurance SpartanNash audits all new vendors that supply our has implemented a rigorous investigation tool within Customers exclusive private brands and requires them to be the new program, which tracks communication between certified in the Global Food Safety Initiative (GFSI)— SpartanNash and our supplier and logs the final (and Their Data) Safe the leading auditing program in the industry. Vendors corrective action. are also audited by SpartanNash Quality Assurance. Safety has always been critically important at Internal Audit of Our Corporate-Owned SpartanNash—from ensuring the products we In an effort to continue to streamline processes, our Retail Stores distribute, sell and produce are safe for consumption team launched a new program to improve the way we SpartanNash’s Food Safety team continues its standard to supporting the health and wellness of nearly track manufacturer, product, consumer feedback and practice of auditing each of our corporate-owned stores 19,000 associates every day. product auditing data. The quality management system every 10 weeks. Additionally, in 2018, the team started modules were custom built for SpartanNash’s needs, preliminary work to provide auditing and other Food offering built-in best practices and powerful flexibility to Safety services to our independent retail customers drive business excellence. and others within the food industry. The full program launched in 2019, giving SpartanNash the opportunity Every new manufacturer must complete a to provide Food Safety and Compliance information and comprehensive questionnaire, which collects data on guidance to its independent retail customers. the manufacturer’s food safety and quality programs. In moving the program from paper-based to automated, Responding to Food Safety Concerns SpartanNash also expanded the number of questions In addition to SpartanNash’s auditing process, the and requirements, creating an even more robust food company also responds to food safety concerns for all safety program. private brands and national brands that are distributed through a SpartanNash distribution center as well as Internal Audit of Our Family and Open Acres products produced at the store level. When notified by a In 2018, SpartanNash Quality Assurance also transitioned supplier of a potential food safety concern, SpartanNash a product auditing program from a third-party vendor to discloses the item description; UPC; pack, lot and DC an internal function. The goal is to audit 1,000 products codes, as well as disposition directions. In instances of a annually to ensure they are performing at the level food recall, the Quality Assurance team also works with SpartanNash expects. Depending on the product, it all regulatory bodies to record the issue and impact. undergoes an analytical review, focusing on organoleptics (taste, odor, color, texture and appearance), pH, total Depending on the circumstances of the recall, solids, viscosity, color, particle size and other factors. The SpartanNash may also communicate directly to store analytical review ensures that SpartanNash is delivering guests with in-store signage and emails to customers quality products to our customers consistently. who participate in our loyalty programs, letting them know the above information, actions taken to mitigate the situation, steps to take to dispose of the product and ways to reach out to our Customer Service team with questions.
Corporate Responsibility Social and Environmental Progress Report 14 Occupational Health and Safety
Safety Scorecard Safety Improvement Team Meetings—Held each In our retail and distribution centers, we use Safety period in all stores and distribution centers, allowing Scorecards to track overall safety scores based on for open communication and discussion on a variety of incident and severity rates, internal and self-audits safety topics, best practices and ideas. and recognition of associates who promote safe work behaviors. The scorecards also provide a roadmap Safety Calls—Performed by SpartanNash’s Safety team so that each location can continue to improve its and attended by associates throughout the company via safety scores. conference call.
The Safety Scorecard also provides “Lagging” and Safety Recognition Program—Each period, good “Leading” indicators. “Lagging” measures past safety habits are recognized at all company locations and performance, where “Leading” predicts future success. associates have the chance to suggest additional ideas The Safety Scorecard is made up of seven metrics: for a strong safety program.
Incident Rate—Measured by the number of OSHA- In 2018, more than 83 percent of retail and Quick Stop recordable injuries divided by the total hours worked at fuel centers scored either an “A” or “B” on their overall the facility multiplied by 200,000 (based on 100 full-time Safety Scorecards—with incident rates dropping from 4.3 workers). to 3.9 (an 8.5 percent decrease).
Severity Rate—Measured by the number of days away To continue to drive improvements in Safety Scorecards, from work due to OSHA-recordable injuries, divided the SpartanNash Safety team continues its practice of by the total hours worked at the facility multiplied by reviewing past performance, fostering and strengthening 200,000 (based on 100 full-time workers). “Leading” indicators in order to reduce injuries and building a strong culture of safety. Safety Audits—Performed annually or more often as needed by SpartanNash’s Safety team. Improved Reporting Leads to Better Safety Metrics Self-Audits—Performed in all distribution center, retail Prior to 2018, work-related incidents and injury and service center locations on a quarterly basis. statistics were tracked manually. With the help of the Risk Management team, the Safety team implemented a new program within the claims database to reduce risk, increase efficiency and continue to improve safety metrics.
Corporate Responsibility Social and Environmental Progress Report 15 Investing in Our Associates’ Safety
In 2018, SpartanNash continued to invest in training Active Shooter Training Medical Emergency Response Teams designed to strengthen our commitment to health SpartanNash’s Asset Protection and Talent Development Trained to assist in emergency situations, Medical and safety initiatives. The trainings included a focus teams created an Active Shooter Awareness Training Emergency Response Teams (MERT) are comprised of on Labeling Compliance, Food Safety and USDA and course, with more than 2,000 associates in retail, volunteer associates able to provide AED defibrillator, FDA Standards, as well as additional training for distribution and service centers completing the training first aid and CPR assistance in times of crisis. Over the emergency situations. and sharing the information at their locations. Today, years, MERTs have responded to many emergencies and the course is available to all associates and every leader can be credited with saving lives. Teams at each company of people in retail and distribution centers as part of the location meet monthly to discuss emergencies they have onboarding process. assisted with, share learnings and work through practice emergency scenarios. Emergency Procedures Flip Chart All SpartanNash locations are also equipped with an Security Control 47,680 Emergency Procedures Flip Chart, which contains tabs for The SpartanNash Security Control Center operates potential emergency situations, along with a description 24/7 and provides a number of services including, but Associates completed of how to best prepare and respond to each situation. not limited to, remote video and alarm monitoring, 47,680 food safety The active shooter information is a critical part of the access control administration and crisis response and associate safety flip chart, with additional details that support the active communication. The SpartanNash Security Control training sessions shooter training. Center is staffed with highly trained operators and in 2018. supports business continuity by quickly notifying key leaders who can respond and react appropriately to emergencies and potential business disruptions. SpartanNash includes the Security Control Center services as an additional value-added offering to its independent retail customers.
Corporate Responsibility Social and Environmental Progress Report 16 Protecting and Securing Sensitive Data
Information Security Privacy Policy In order to increase awareness of cybersecurity In addition to protecting our own data, we value the issues and integrate data security best practices into privacy of our website visitors and do not sell or share SpartanNash’s culture, the IT Security & Compliance individually identifiable information with any organization team updated all policies in 2018, introducing a Security outside of SpartanNash and its affiliates, except under Awareness program as part of those efforts. certain conditions.
The information that resides on our computer systems On spartannash.com and our banner websites, we and networks is of great value to SpartanNash—and internally analyze and disclose the information we collect is critical to ensuring our customers’ trust. Due to for the following purposes: the increasing value of information we collect, store, process and share with our partners, SpartanNash • to provide requested services or products; has established a high priority to protect this critical information. The foundation of an effective information • to help us improve our website, understand our security program is built on strong information security customers and their preferences, and to market our policies that are in balance with business operations. products and services; Information security policies define a concise set of behaviors that provide a secure and enabling • to align with our contractors who provide supporting environment in which SpartanNash may use and manage services so that they can access information needed its information resources with protection from data loss, for such services, but only on terms consistent with service disruption, misuse or unauthorized access. SpartanNash’s privacy policy; and/or
To comply with business standards and industry • to protect our business interests or the rights of regulations, SpartanNash IT Security & Compliance also others, when required by law, to cooperate with enabled Data Loss Prevention in Office 365 to prevent law enforcement, or in connection with the sale or loss of credit cards, bank account numbers and Social merger of all or part of our business. Security numbers, in addition to establishing PCI Security Awareness training for higher compliance.
Focus areas in 2019 and beyond include phishing Learn more about our Privacy Policy. training, as well as simulated cyber-attack events, static learning and interactive training—all with the goal of reducing cyber risk and protecting sensitive information.
Corporate Responsibility Social and Environmental Progress Report 17 Attracting and Retaining Talent
In 2018, SpartanNash expanded its Total Rewards Total Rewards Competitive Pay and Benefits benefits offerings, which include both monetary and As a result of our Total Rewards program, SpartanNash To attract and retain top talent, we consistently evaluate non-monetary rewards. At SpartanNash, we recognize expanded its benefits offerings to include: market rates to ensure we offer competitive wages for our associates are our greatest asset, and we want to all full- and part-time hourly and salaried positions. As ensure we provide robust, diverse, affordable benefit • A new medical plan option to provide flexibility, with a result, SpartanNash increased the starting rate to at options to attract and retain top talent, while driving four programs to choose from least $10 per hour for retail positions. Companywide, work-life balance. pay is adjusted annually to ensure competitive wages for • Lower-cost, convenient online doctor visits all associates.
• A pharmacist-led diabetes care As a result of the 2018 Tax Reform Act, SpartanNash also management program paid a one-time discretionary cash bonus to more than 8,000 associates, including hourly and salaried union and • A dedicated nurse program for chronic conditions or non-union associates throughout the company. In total, serious illness management $1.7 million was distributed to associates, with additional tax savings reinvested into wage increases. • An associate perks/discount program
• A more robust employee assistance program (EAP) to focus on emotional health
• A new and improved wellness program, making it At SpartanNash, we measure easier for associates to participate and earn rewards associate engagement through an through healthy behaviors annual survey. In 2018, a record- high 91 percent of our associates • An improved retirement savings plan, increasing the participated, with 73 percent of company’s 401(k) matching formula and providing participants reporting favorable immediate vesting engagement scores. In 2019, 85 percent of associates participated in Pay Equity the survey, which is well above the SpartanNash conducted a compensation parity equity national average of between 30 and analysis, with the results affirming our pay practices are 40 percent participation. in substantial compliance with federal requirements for equitable pay.
Corporate Responsibility Social and Environmental Progress Report 18 Investing in Leadership and Associate Development
SpartanNash has redesigned its leadership curriculum, Equipping New Leaders to Excel in Fostering a Culture of Continuous Feedback with courses aligned to support business objectives Their New Roles In 2018, changes were made to our performance and needs. A new manager course, “Excelling as a New Leader,” management process, replacing an annual performance launched as a required leadership development program review with shorter, quarterly check-ins. The process In 2019, 439 leadership positions were filled by internal for newly promoted supervisors and managers to continues our development-focused culture and provides candidates, with 41 percent filled by female associates, help them hone the skills needed to make an effective associates with regular, ongoing feedback and a “look 15 percent filled by people of color and 5 percent filled transition from individual contributor to leader of people. forward” mentality of goals and development, while also by veterans. reviewing the past quarter’s performance. Associates Encouraging All Associates to Achieve are now encouraged to have a development plan to use Their Potential as an ongoing discussion with their manager within the 1,700 managers “Achieving Your Potential” was launched on our learning performance check-ins. management system for associates, making it easy and above for them to own their career and take the lead in their Dignity and Respect Training development and career opportunities. The initiative In 2018, every associate was required to review allows associates to take self-assessments, explore and acknowledge the Dignity and Respect and careers, review the Leadership Readiness Checklist Anti-Harassment and Discrimination Policy. In total, and set goals within their talent profile to identify more than 14,000 associates took part in dignity and 689 women specific milestones and clear objectives toward their respect training. Today, every new associate is required development and career objectives. to take part in education and awareness training and acknowledge the policies as part of the onboarding 121 people of color Associates are also encouraged to complete leadership process. Leaders of people also completed courses on development courses based on their career interests Leading Diverse and Inclusive Teams and Recognizing and areas of the business. In 2018, associates completed and Preventing Harassing Behavior. 68 veterans 6,582 leadership development courses for a total of 10,142 hours of training. The following year, associates completed 8,793 leadership development courses for a 353 millennials or younger total of 12,480 hours of training. Providing the Tools to Explore Career Paths 103,000+ Creating Inspirational Leaders SpartanNash also launched a way for associates to The SpartanNash Talent Development team launched explore career paths and job descriptions, compare their hours an “Inspirational Leadership” series in 2018, which was current job profile to other jobs, create a talent profile taken by more than 600 service center, Supply Chain and and internal resume, identify short-term and long-term In total, SpartanNash associates completed retail leaders. Topics focused on connecting and inspiring career goals, map a career path toward their goals, and 103,461 hours of course training in 2019, for associates, holding people accountable for results in a create development plans to achieve them. This initiative an average of 5.1 hours per associate. These positive way and fostering associate development. supports our culture of transparency and encourages numbers do not include the thousands of associates to grow their career at SpartanNash, if that is hours on on-the-job training required for retail their goal. and distribution specific jobs.
Corporate Responsibility Social and Environmental Progress Report 19 Ethics and Our Culture of Compliance
Code of Conduct Reporting Misconduct and Our Ethics Line Sarbanes-Oxley To ensure associates act ethically and comply with our All associates are responsible to help ensure that As a publicly traded company, SpartanNash is required company policies, laws and regulations, the SpartanNash SpartanNash maintains a work environment that is free to be compliant with the Sarbanes Oxley Act of 2002 Code of Conduct reflects how we conduct business with from unlawful and unethical behavior. SpartanNash (SOX). SOX requires that the company maintain a system our coworkers, customers, communities, shareholders, requires reporting of all such conduct regardless of the of effective internal control over financial reporting. suppliers, vendors, regulatory agencies and competitors. associate’s identity or position. If an associate believes The company, as well as an external auditor, performs It includes fair employment practices, guidelines for a they have been subject to conduct prohibited by this assessments of the design and operation of internal harassment- and intimidation-free workplace and the policy or witnessed such conduct, they are encouraged control on an annual basis. Additionally, members of the requirement to follow laws to ensure we remain in to discuss concerns with their immediate supervisor company’s executive management team are required compliance when conducting our business. or Human Resources representative. Supervisors are to certify that financial statements and disclosures are required to report all instances of unlawful and unethical complete and accurate and that the system of effective behavior, including conflicts of interest, harassment, control remains in place at the end of a reporting period. discrimination or retaliation (either observed or reported) to the Human Resources Department for internal investigation.
For serious concerns—or when associates wish to remain anonymous—reports can also be filed through the SpartanNash Ethics Line by calling 800-710-4848 or visiting spartannash-ethics.com.
SpartanNash also prohibits taking negative action against any associate for reporting workplace violations or for cooperating in an investigation.
On a quarterly basis, our Legal team compiles and Code of Conduct analyzes all reports that come in to the SpartanNash March 2018 Ethics Line. This data is also shared quarterly with the SpartanNash Board of Directors.
Read the SpartanNash Code of Conduct.
Corporate Responsibility Social and Environmental Progress Report 20 A Culture of Empowerment
Project ONE TEAM At the end of 2018, SpartanNash launched Project ONE TEAM, where we invited every associate to participate and offer ideas to improve how we work in order to improve profitability and efficiencies companywide. The goal is to realize more than $20 million in savings by the end of 2020 as a result of implementing Project ONE TEAM initiatives.
Since beginning Project ONE TEAM, associates from across the company have generated more than 4,500 ideas to improve SpartanNash— ranging from simple ideas to eliminate frustrating work to complex ideas that address processes that touch many areas of the company.
But our work isn’t done—and associates are empowered to continue to submit ideas to improve the customer experience, reduce expenses or increase revenues.
Corporate Responsibility Social and Environmental Progress Report 21 Volunteering
Volunteering helps build stronger communities, while enhancing relationships, camaraderie, teamwork and a sense of pride and purpose in our service to others. SpartanNash has continued to expand its volunteering efforts and celebrate the associates who give back with gifts of time and talent.
Corporate Responsibility Social and Environmental Progress Report 22 Volunteering
In both 2018 and 2019, SpartanNash Community Captains and platoon members located throughout our company challenged associates to collectively contribute as many volunteer hours as possible – and each year, SpartanNash associates responded by recording more than 56,000 annually and making an economic impact of more than $1.3 million each year.
Since reporting is voluntary and much of it was done manually before launching a digital solution in October 2018, we believe there may be even more associates giving back to their communities without submitting their hours.
100 Club
SpartanNash associates who record more than 100 volunteer hours in a calendar year join the 100 Club. Members then select their favorite 501(c)(3) nonprofit organization to receive a $100 donation in their name.
In 2019, 176 associates joined the 100 Club— an 11 percent increase 11% from the year before.
Corporate Responsibility Social and Environmental Progress Report 23 Community Captains
SpartanNash Community Captains serve as associate In total, 36 Community Captains serve across all business engagement ambassadors, supporting and driving the units, and each is selected by senior leadership as a way company’s commitment to support and engage with our to recognize and develop leadership skills. They create local communities and fellow associates. Community platoons of associates to support companywide and Captains support our corporate responsibility initiatives location-specific initiatives. by leading community and associate engagement initiatives as well as volunteering efforts. Together, they In 2018, Community Captains led initiatives that foster a culture of fun and celebration—and create a resulted in: purpose beyond the paycheck for themselves and others at their locations.
Helping to promote SpartanNash Foundation retail scans, which raised 57,364 $1 Million volunteer hours
of associates donating to the SpartanNash Foundation associate 25% pledge campaign—in addition to a 100+ 30 percent increase in dollars raised More than 100 associate engagement opportunities and events
Corporate Responsibility Social and Environmental Progress Report 24 Diversity & Inclusion
At SpartanNash, we embrace the unique talents and backgrounds of our associates, and we strive to build a team as diverse as the customers and communities we serve. In fact, one of our key strategic initiatives is to drive associate engagement—and by cultivating relationships based on our company’s core values of respect, integrity and teamwork, we drive innovation, build a winning culture and make SpartanNash a great place to work.
In 2018 and 2019, our diversity and inclusion efforts continued to focus on two areas—recruiting, developing and retaining women and veterans.
Corporate Responsibility Social and Environmental Progress Report 25 Diversity & Inclusion Gender Diversity
Workforce Diversity 2019 Profile 46% 54% Women Men
Overall 2% 13,927 4% Asian 2 or More 1% 39% associates Races Other Women 4% 61% Does not include Hispanic Men Martin’s Super Markets associates
12% Black SpartanNash Manager Workforce
16% Women
77% 84% White Men
Veterans 5% SpartanNash Leadership Team (VP and Above) Differently Abled 10% (Self-Reported)
Minority 23% 33% Women 67% Women 46% Men
SpartanNash Board of Directors Corporate Responsibility Social and Environmental Progress Report 26 Diversity & Inclusion
SpartanNash’s goal is to increase representation of Welcome Home celebrations for associates, veterans, women and diverse associates across the spearheading the Christmas gift drive for veterans Thank you for helping make the organization. In 2019, 47% of new hires and 41% of and presenting SpartanNash challenge coins Military Welcome Center at the Grand all promotions were women. SpartanNash has also to more than 700 veteran associates are just a been recognized as a leader among Michigan’s 77 few examples of SNVETS outreach efforts. Rapids airport! We are thankful for public companies, with three women serving on its the support and are thrilled with corporate board of directors (33 percent) and three Network of Executive Women this addition. C-suite female leaders (30 percent) serving respectively Through our partnership with the Network of Executive as Chief Legal Officer, Chief Merchandising and Women (NEW), women and men across the organization Abby, proud Army wife Marketing Officer and Chief Human Resources Officer. are invited to become more actively engaged in efforts to empower and promote the growth and development SNVETS of our female associates. Associates took advantage of The launch of the SNVETS Associate Resource the many learning and developmental opportunities Group was spearheaded by SpartanNash associates offered through NEW, with approximately 1,000 hours representing multiple locations throughout the of training and educational workshops logged in 2018. company. SNVETS provides a forum for team-building and developing leadership skills—working toward the goal of Supporting, Networking, Volunteering, Educating, Training and Serving military associates, their families and veterans in the communities we serve.
SpartanNash is recognized as a GI Jobs SpartanNash has been named a Winning Designated Military Friendly® Employer Company by 2020 Women on Boards since 2011. SpartanNash is the title sponsor of the Military and a silver-level Veteran-Friendly Employer by The designation recognizes SpartanNash for Welcome Center, located in the Gerald R. Ford the Michigan Veterans Affairs Agency. championing board diversity by having 20 percent or International Airport in Grand Rapids. The Military more of its board seats held by women. Welcome Center is open to military members, veterans and their families 24 hours a day. The center offers refreshments, charging stations and an interactive map where military personnel and veterans can pinpoint where they have been stationed or deployed.
Corporate Responsibility Social and Environmental Progress Report 27 Waste Reduction
Our commitment includes expanding our reduce, reuse and recycle practices for multiple materials and products throughout our entire footprint.
Corporate Responsibility Social and Environmental Progress Report 28 Waste Reduction
Food Diversion and Donations In 2018, a cross-functional team was tasked with Repurposing Product Through Each year—in addition to our distribution and retail evaluating food safety and ways we can increase the Innovative Partnerships initiatives to reduce food loss through improved amount of fresh products we can donate, meeting In addition to feeding families, we also divert food at forecasting, procurement, inventory control and food one of the most critical needs for produce, dairy and select locations for livestock feed and other purposes. handling—SpartanNash partners with local food other items. The team met with food pantry partners Through a partnership with nearby farmers and livestock banks and food pantries throughout our company’s to determine how to automate the donation process to producers, our Indianapolis-based Caito Foods operations footprint to fight hunger and reduce food waste. Our reduce food waste, ensure food safety for perishable divert the rinds, husks and other excess from its Fresh corporate retail locations and distribution centers products and increase donations, while striving to Cut operations, repurposing the diverted product into support local food banks with donations of pantry deliver healthier options to our food pantry partners. feed for animals. In 2018, 13,093 tons of product from staples and shelf-stable products as well as highly Caito Foods was recycled into animal feed, diverting the sought after fresh dairy, meat and produce. We also Going forward, SpartanNash is on track to establish a food waste from landfills in order to help local farmers. donate display products from our annual food shows. one-way food donation process for both our retail and distribution operations, with a goal of reducing food Through our distribution centers, these donations totaled waste by diverting food to pantries and food banks. 5,078,845 million pounds, providing the equivalent of more than 4,232,000 meals to families—in addition to the food donations made through our retail stores.
DC Food Donations (in pounds) Year-over-year
2018 5,078,845 million
2017 2,858,898 million
Corporate Responsibility Social and Environmental Progress Report 29 Reducing and Recycling
In 2018, we made great strides with our data Cardboard and Paper Plastic, Metal and Electronics collection and quality management systems. One Across our company footprint, SpartanNash recycles In addition to our plastic film efforts, SpartanNash also area for improvement in the future is how we record paper, mixed paper and cardboard. In 2018, these efforts recycled 79,799 pounds of other plastic items as well and report our vast recycling initiatives. Our retail resulted in 41.5 million pounds of cardboard and 331,018 as 1,670 pounds of metal. SpartanNash is also stores and distribution centers have partnered with pounds of paper recycled. This is equivalent to nearly committed to the safe disposal of electronic waste, hundreds of recycling companies and composters 1,100 cubic yards of landfill saved. recycling 50,717 pounds of electronics at its corporate to maximize our recycling efforts and automate the headquarters in Grand Rapids, Mich. in 2018. tracking process. Plastic Film In 2018, SpartanNash recycled a total of 1.1 million Waste pounds of plastic film at select distribution centers—a Recently, SpartanNash moved to a single source hauler 14 percent increase from the year prior. We also work for its waste management, allowing the company to with recycling vendors across our footprint to analyze its waste data. In total, SpartanNash produced recycle plastic bags and to promote sustainable 20,609 tons of waste in 2018. Future initiatives will focus packaging initiatives. on setting waste-reduction goals at each SpartanNash location to further reduce our environmental impact.
Sustainability Champions
In October of 2018, SpartanNash created Sustainability Champions in each of its distribution centers to help track waste, recycling, energy and food donations.
Sustainability Champions serve as volunteer leaders within their respective facilities, driving awareness for and support of sustainable efforts. Longer term, Champions will utilize their baseline data to create goals for waste and energy reduction, as well as expand the tracking of water usage, and carbon and greenhouse gas emissions.
Corporate Responsibility Social and Environmental Progress Report 30 Earth Week
To add some fun and engagement to our waste reduction In 2019, our Earth Week efforts resulted in 687,185 efforts, SpartanNash holds an annual Earth Week pounds of materials collected and diverted from donation drive, keeping unused clothes, electronics and landfills—a 64 percent increase from 2018! Since 2011, We are very fortunate to have household goods out of landfills—and, in partnership SpartanNash’s Earth Week Goodwill donation drives have with Goodwill Industries, converting them into workforce diverted 1,317,925 pounds of materials from landfills, had this relationship with development training. and Goodwill has converted these donations into more SpartanNash over the years and than 282,400 hours of workforce development training in the communities it serves. share the message and mission of Goodwill with their store guests and associates. Thank you, SpartanNash associates and our many Earth Week donors for supporting our job training and placement services.
Jill Wallace Earth Week Goodwill donations (in pounds) Chief Marketing and Communications Officer Year-over-year Goodwill of Greater Grand Rapids
2011-2017 209,616 pounds
2018 419,175 pounds
2019 687,185 pounds
Corporate Responsibility Social and Environmental Progress Report 31 Energy Reduction
As we continue to invest in energy-saving technology and equipment and renewable resources, our goal is to minimize our carbon footprint in our retail, distribution, corporate and food processing segments.
Corporate Responsibility Social and Environmental Progress Report 32 Energy Reduction
Energy Efficiency Natural Gas and Water Our current energy efficiency efforts are focused on In addition to reducing our energy consumption, we also refrigeration, heating and cooling and interior and want to reduce the amount of natural gas and water exterior lighting. Across the entire company, we reduced we consume companywide. In 2018, our natural gas our electricity consumption by 1.4 million kilowatt hours usage increased by 9 percent due in large part to colder in 2018. temperatures; however, our water usage went down by 2.4 percent overall. This was driven in large part by our Since we began tracking our energy efficiency projects wholesale distribution centers, where water consumption in 2007, SpartanNash has saved a total of 52.2 million decreased by 11.3 percent. kilowatt hours. Renewable Energy Going forward, our initiative to outfit our retail stores Working with our utility providers, SpartanNash is with LED lighting will continue, upgrading more than also committed to increasing the amount of electricity 80 stores with LED lights in 2019 and 2020. Three derived from renewable sources. In 2018, 8.2 percent of distribution centers will also be outfitted with LED lights electricity used in our retail stores came from renewable for a total investment of $2 million. sources on average, as well as 4.1 percent in our wholesale distribution centers and 9.6 percent in our Sustainability Efforts in our Retail Stores MDV military DCs. At our service centers, 18.1 percent As we remodeled and rebranded 18 Family Fare stores, of electricity used comes from renewable sources, we replaced or retrofitted more than 320 feet of cases in on average. our produce, frozen food and dairy departments. These new cases are 20 percent more energy efficient. By saving 1.4 million KWHs with In addition to the refrigerated cases, we also upgraded lighting and refrigeration upgrades, the general lighting at 15 Family Fare stores with LED SpartanNash reduced its energy usage lights, which will result in an 8 percent annual reduction by the equivalent of more than in total energy consumption for those stores. 130 homes in 2018.
Equals ten homes.
Corporate Responsibility Social and Environmental Progress Report 33 Fleet Efficiency
As the sixth largest food distributor in the country, our Extending the Life of Tires and Oil for Maximizing Fuel Efficiency fleet of tractors and trailers travel more than 51 million Improved Efficiency As a result of these efforts, our fleet’s average miles per miles a year. The SpartanNash Transportation team also made gallon improved 12 percent over our 2013 baseline— adjustments to its oil change and tire disposal resulting in 107,938 fewer gallons of diesel consumed Beyond our SpartanNash fleet of tractors and trailers, schedules, both of which reduced waste and optimized in 2018. our BRT managed freight business has been nationally fuel economy. By switching to semi-synthetic oils and recognized as a SmartWay partner by the U.S. extending oil change intervals, the SpartanNash fleet Fleet Optimization Environmental Protection Agency as well as a Top Green can maximize oil usage and reduce waste oil, filters and The SpartanNash Transportation team continued its Provider by Food Logistics. labor—as well as reducing its overall oil consumption by network optimization efforts in 2018, making each 6,000 gallons per year. delivery route more efficient by ensuring trailers remain Enhancements in Transportation Equipment as full as possible on inbound and outbound routes Since 2017, all trailers have been equipped with satellite All new tractors are also equipped with fuel-efficient and independent retail customers are assigned to the tracking and remote temperature monitoring and alert tires with a seven-year lifespan, which optimize fuel distribution center closest to their base of operations. technology for improved utilization of trailers. These economy and reduce tire disposal rates. SpartanNash These efforts resulted in a reduction of 350,497 efforts also result in enhanced food safety and quality then partners with recycling vendors, and all tires are miles in 2018—in addition to 51,649 fewer gallons of control on in-transit trailer temperatures. repurposed into playground and landscape mulch, tracks diesel consumed. and athletic fields and more. Solar panel technology was also added to trailers, which charge the temperature control units and extend the Fleet MPG battery life of the temperature monitoring system. All Year-over-year new trailers are also equipped with electric standby— giving them the ability to run the temperature control units with electricity instead of diesel to improve *Compared to industry 2018 6.89* fuel efficiency. average of approximately 6.5 miles per gallon.
2017 6.79 6,000 2016 6.60 gallons 2015 6.79 1.2 million In 2018, SpartanNash’s transportation fleet 2014 6.22 used 6,000 fewer gallons of oil as a result The 51,648 fewer gallons of diesel consumed of its sustainability practices. by the SpartanNash transportation fleet in 2018 is equivalent to reducing fuel emissions 2013 6.14 by 1.2 million pounds of carbon dioxide. Corporate Responsibility Social and Environmental Progress Report 34 Look Forward
As we continue on this journey, we ask ourselves access to email while working). The impact: in And while these goals in and of themselves the question: What positive changes can we drive 2019 alone, associates reduced their printing may appear daunting given SpartanNash’s when ‘taking food places?’ on our copy machines by 15 percent (equivalent large footprint, we will remain committed to to more than 380 trees), not to mention toner, transparency and governance. In addition to Clearly every action has a reaction, and at equipment and repair travel/hours. our annual report and public facing updates SpartanNash we are mindful that our business throughout the year, we will launch an interactive and personal decisions impact our family of We also recognize the power of working Q&A on spartannash.com/corp-responsibility associates, customers, communities, suppliers, collectively to harness, sustain and grow our website. This will enable us to provide updates shareholders—and certainly the environment. investment in the communities we serve. In 2020, throughout the year. we will be forming a Corporate Responsibility Task We also recognize the power of change, beginning Force sponsored by executive leaders who oversee We invite you to engage in our journey. with the individual actions of SpartanNash wholesale distribution, military distribution, associates throughout the company. As retail and all supporting centers of excellence mentioned, we launched Project ONE TEAM, to further embrace and differentiate through whereby our empowered associates spoke up and our corporate responsibility initiatives. The Task submitted more than 4,500 ideas to make us a Force will be supported by key stakeholders to better, more efficient, more sustainable company. formalize SpartanNash’s labor and human rights policy, expand compliance with the company’s We believe positive change can be made by each Code of Code to suppliers and vendors, and of us individually, and collectively, to build stronger further our strategic plans for an environmental communities where we live, work and serve. management policy, sustainable sourcing and packaging and supplier diversity. The Task Force A simple example is our 2019 ‘think before you will also collaborate to develop efficiencies in print’ challenge, whereby associates across the data collection for measurable, metric-driven company are embracing digital alternatives to management and continue food diversion and ‘printing and posting’ (an age old go-to for retail energy and waste reduction initiatives. and distribution team members who have limited
Corporate Responsibility Social and Environmental Progress Report 35 Corporate Responsibility Social and Environmental Progress Report 36